Article Information

Journal:Business and Economics Research Journal

Title of Article:An Empirical Analysis of the Relations among Consumer Expenditures, Consumption Credits and Consumer Confidence in Turkish Economy

Author(s): Ibrahim Arisoy, Cengiz Aytun

Volume: 5

Number: 2

Year: 2014

Page:33-45

ISSN:1309-2448

Abstract

This paper investigates the relationship among consumer credits, interest rates, consumer confidence and consumption expenditures in Turkey by using the Toda-Yamamoto (1992) Granger-causality approach and regression analysis over the period 2005:1-2012:8. The empirical results based on the causality test show that consumer confidence, interest rate and consumer credits play an important role in explaining and predicting household consumption expenditures. Furthermore, the ordinary regression results reveal that there are statistically significant positive relations among consumer confidence, consumer credits and household consumption expenditures in the Turkish economy.

Keywords:Consumer confidence index, consumption expenditures, consumption credits, granger causality

JEL Classification:C23, C32, D12, E17